high-low index

High-Low Index

In technical analysis, an index of the number of stocks reaching a new high minus the number of stocks reaching a new low. This is used to determine whether a market movement is sustainable. A positive high-low index when the market has gone up means that that market is likely to continue to rise. However, mixed signals (i.e. a negative high-low index when the market has risen or vice versa) indicates that the current market movement is unlikely to continue.

high-low index

A cumulative tabulation of the number of stocks reaching new highs minus the number of stocks reaching new lows. Technical analysts use the high-low index to measure the strength of the market's movement. In general, movement of the high-low index in the same direction as the market confirms the market's movement and indicates that this movement is likely to continue in the same direction.

Additionally, two special features in the industry group analysis -- the Advance-Decline Line and the High-Low Index -- provide technical indicators designed to help forecast when a group is nearing a top or bottom of a cycle.

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